How Much the Average Upper-Class Retiree Spends Monthly at Age 83
Written by
Daisy Carrington
Edited by
Levi Leidy
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By their early 80s, many retirees expect their budgets to shrink as travel slows and their needs diminish. But for affluent retirees, the story is often very different. Healthcare costs rise, long-term care becomes more likely and maintaining a comfortable lifestyle keeps expenses elevated.
According to the 2024 Consumer Expenditure Survey, households headed by someone 75 or older spend about $53,031 annually — roughly $4,400 per month. However, according to Linda Jensen, a retirement planning expert and founder of Heart Financial Group, affluent retirees often spend double or more, with budgets ranging from $8,000 to $ 10,000 or more per month, depending on location, health and lifestyle choices.
“The affluent think they won’t run out of money in retirement, but without careful planning, they can see their assets disappear,” warned Jensen.
Here are the major expenses that upper-class octogenarians are likely to incur each month.
Long-Term Care
Few retirees can escape the need for long-term care. According to the Administration for Community Living, 70% of retirees will need long-term care at some point. Unfortunately, the cost of that type of care is increasingly prohibitive, according to the 2024 Genworth Cost of Care Survey, which puts in-home care costs at nearly $78,00 per year — though Jensen says that figure is likely modest.
“Assisted-living facilities cost around $10,000 per month. And if you want a private room, those costs can skyrocket,” she said.
For retirees with Alzheimer’s or dementia, the bill can be even higher. A 2025 Alzheimer’s Association report estimates the total lifetime out-of-pocket costs for a family member with dementia to be nearly $247,000 a year.
Many retirees assume Medicare will handle long-term care.
“It doesn’t,” Jensen stressed, noting most affluent households pay for more comprehensive coverage.
Housing and Taxes
While upper-class retirees might not have a mortgage to pay off, many have much higher property taxes to pay, as well as higher maintenance costs. As retirees become less able-bodied around the house, they’re likely to increase their spending on hired help — ballooning their monthly expenditures.
“I have clients in Washington state spending $15,000 a month just to stay in their homes,” Jensen said.
She also notes that losing a spouse — a commonality for retirees in their 80s — comes with a burden beyond grief. Newly single retirees will discover that their taxes have gone up while their income has gone down.
“For widows and widowers, their standard deduction suddenly gets cut in half. They’re also no longer collecting their partner’s pension or Social Security checks,” noted Jensen.
To help mitigate some of these burdens, she recommends managing taxable income by timing withdrawals and converting to a Roth to avoid bracket creep.
The Bottom Line
For upper-class retirees, the monthly cost of living at age 83 can easily exceed $8,000-$10,000, and cases requiring intensive in-home or memory care may run far higher. The affluent may not run out of money, but unchecked spending can erode the legacies they hope to leave.
“The majority of my clients don’t just want to live well — they want to leave something behind,” Jensen said. “That takes careful planning. Even if you have wealth, you need a holistic retirement strategy that covers income, healthcare, taxes and estate planning. Otherwise, assets can disappear faster than you expect.”
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